Employees who are out of sight and out of mind may cause FLSA violations
Telecommuting has taken off as a way to increase efficiency and reduce operational expenses, but work from home policies can cause payroll problems for employers if they aren't compliant with the Fair Labor Standard Act (FLSA). The Department of Labor (DOL) requires that companies track their covered employees' work time even if they are out of the office.
"The rule is also applicable to work performed away from the premises or the job site, or even at home. If the employer knows or has reason to believe that the work is being performed, he must count the time as hours worked," the Wage and Hour Division states in a document that clarifies the definition of time attendance and explains when records must be kept.
To avoid recordkeeping violations, companies may need to deploy a remote timekeeping solution such as a mobile application or an online portal that allows workers to record their time and attendance regardless of their physical locations.
These documents can also be used to guarantee employees are receiving the proper amount of wages for their employee attendance. Employers must still pay overtime at a rate of one-and-a-half times workers' standard wage if they are on the clock more than 40 hours in a single workweek.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.